The institutional adoption of the two main cryptocurrencies is likely to attract many venture capitalists and early investors for small projects that have already reached a decent size, but have not yet realized their full potential. Although the risk of these investments is high, the returns can be just as attractive.
Daily review of cryptographic market data. Source : coin360
For these investors, there are several projects to choose from, as more than 50 digital assets have a market capitalization of more than $1 billion, giving them unicorn status, a term used in legacy markets for companies with a market capitalization of more than $1 billion.
If the big players get into these unicorns, they are likely to rebound, to the benefit of small, early investors who have an advantage over the institutions. While it may take a long time for these gains to materialize, traders can benefit in the short term from a surge in the various altcoins.
Let’s take a look at the charts of the top five crypto-currencies that could resume their upward trend in the coming days.
Bitcoin broke above the upper resistance of $38,000 on Feb. 5 and fell on Feb. 6, but the bulls were unable to hold higher levels, as seen by the long fuse in the daily candle.
Daily chartBTC/USDT. Source: TradingView
The inability of the bulls to keep it above $40,000 resulted in increases today, and the bears are trying to keep it below $38,000. If successful, the BTC/USD pair could fall to the 20-day exponential moving average ($35.386).
If the pair of the 20 EMA flattens, the bulls will try to resume the uptrend. A breakout of the upper $40,000 resistance zone at $41,959.63 could signal the start of the next phase of the uptrend towards $50,000.
On the other hand, if the bears break below the 20 EMA, the pair could slip towards the 50-day simple moving average ($32.840). If this support is also broken the pair could drop back to the $28,850 support.
4 hour chart BTC/USDT. Source: TradingView
On the 4-hour chart we can see that the bulls pushed the price above $38,000 to $40,000 into the upper resistance zone, but the pair came back down from $40,952.16. This shows that bears are active at higher levels.
The pair has fallen below the 20 EMA and the Relative Strength Index (RSI) is just above the midpoint, indicating that momentum may be waning. The pair could now drop to the 50-SMA.
If the pair jumps off the 50-SMA, the bulls will make another attempt to resume the uptrend. However, if the 50-SMA is breached, the correction could be ramped up to $32,000.
Polka Dot (DOT) is in a strong upward trend. The bulls pushed the price down on Feb. 03 above the $19.40 resistance level, but failed to consolidate the breakout. This suggests that the bears are trying to stop the uptrend.
DOT/USDT Daily Chart. Source: TradingView
One positive sign, however, is that the bulls have not allowed the price to fall below $19.40. This indicates that traders are not aggressively taking profits and buying at every small drop.
If the bulls can push price above $21.7321 now, the next phase of the uptrend could begin. The upside target is $24.08, then $30. The rising moving averages and the RSI above 61 show that the bulls are in control.
If, contrary to this assumption, the bears push the price below the 20-day EMA ($17.43), it would mean that the bullish momentum has weakened. The DOT/USD pair could then fluctuate between $19.40 and $14.7259 for some time.
DOT/USDT 4-hour card. Source: TradingView
The four-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation. Bears tried to push price below the triangle, but a strong bounce from the 50-SMA shows aggressive buying at lower levels.
If the bulls manage to push the price above the triangle, the advantage will be in favor of the bulls. The model’s price target is a breakout above the triangle at $24.1621. However, if the bears keep the price below the triangle, the pair could drop to $15.8379.
Chainlink (LINK) broke through and closed above the upper resistance of $25.7824 on February 5, but the bulls were unable to maintain the momentum the following day. This shows that the bears are aggressively defending the $25.7824 to $27 resistance zone.
Daily chartLINK/USDT. Source: TradingView
However, the long tail of today’s candle shows the bulls buying the dip towards the 20-day EMA ($22.83). Rising moving averages and RSI in positive territory suggest the path of least resistance is up.
If the bulls manage to push price above the upper resistance zone, the next phase of the bullish trend could begin. The next point to keep an eye on is $30, and if this is also broken, the uptrend could reach $33.
On the contrary, if the bears get below the 20 EMA, the LINK/USD pair could continue to trade in the $20.1111-$25.7824 range for a few more days.
LINK/USDT chart 4 hours. Source: TradingView
The 4-hour chart shows the formation of an upward triangle. When the pair bounces back to the current level, the bulls will make another attempt to push the price above the upper resistance zone. If successful, the pair could rally to the model target of $31.4537.
Conversely, if the bears keep the price below the support line, the pair could drop to $22.61 and then to $21.65. The slight decline in the 20-EMA and the RSI in negative territory suggest a slight advantage for the bears.
Trading in a narrow range between $0.325 and $0.35 dissolved on February 6. to the upside, suggesting the bulls have taken over from the bears. If the bulls can now hold Starlight (XLM) above $0.40, the next phase of the uptrend could begin.
Daily chartXLM/USDT. Source: TradingView
The rising moving averages and the RSI near the overbought zone suggest that the bulls are in control. Above $0.40, XLM/USD could rally back to $0.50, where the bears could build solid resistance again.
If the bulls fail to close above $0.40, the pair could fall back to $0.35. A strong bounce from this support would mean that the bulls have returned to support, which would increase the likelihood of a breakout above $0.40.
Contrary to this assumption, a breakout below the 20-day EMA ($0.315) would indicate that the current breakout was a bear trap.
XLM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair has broken the symmetrical triangle with a price target of $0.445. Both moving averages are on the upside and the RSI is positive, meaning the bulls are in control.
If the price bounces off the 20 MA, it means traders will go on the dips, improving the prospects of a resumption of the uptrend. Conversely, a break below the 20 EMA would be the first sign of a possible weakening of momentum.
THETA is currently consolidating in an upward trend. The price action of the past few days formed a rising triangle that will end on a breakout and a close above $2.51.
Daily chartTHETA/USDT. Source: TradingView
The 5th. In February, the bulls pushed the price above the $2.51 level, but could not hold the breakout. This suggests that the bears are trying to protect resistance at $2.51.
The positive sign, however, is that the bulls have not allowed price to fall below the 20-day EMA ($2.09). If price bounces off current levels, the bulls will try to push the THETA/USD pair above $2.51.
If successful, the pair could resume the next phase of the uptrend. The price target for breaking through the triangle is $3.56. This bullish setup will be negated if the bears allow price to drop below the triangle.
Chart 4 hours THETA/USDT. Source: TradingView
The 20-YEMA of the 4-hour chart is turning bearish and the RSI has fallen into negative territory, indicating that the bears are trying to return. A break below $2.10 could bring the price back to the triangle support line.
On the other hand, if price reverses from current levels or the triangle support line, this would indicate that the bulls are buying on the downside. They will then try to push the price back above the $2.51 resistance.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every transaction involves risk. You should do your own research before making a decision.
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